Share consolidation

scheister

Just wondering something about share consolidations.

It was announced last week that bank of Ireland are going to do a 30:1 share consolidation so for every 30 shares you have now you will have 1 afterwards but what happens to the odd number shares. say for example i own 100 shares.
under the plan i will 3 new shares for 90 of my old shares but what will happen to the balance of 20?

The Cuban

Sold and the money returned to your broker account. so you should get about €4.60

scheister

The Cuban wrote: »

Sold and the money returned to your broker account. so you should get about €4.60

thanks was thinking that might be the case. What im thinking i might do is buy some more shares so the figures match using degiro the fees are not much and im not planning on selling the shares in the short/medium term

The Cuban

Question now is, how much divi per share can we expect? At just a tad over 1 billion shares could we expect a 50c/share payout? Early next year?

lucky john

The Cuban wrote: »

Question now is, how much divi per share can we expect? At just a tad over 1 billion shares could we expect a 50c/share payout? Early next year?

the bank is expected to pay out 20% of 2017 profits as a dividend. How much that will be won't be known until late February 2018. The percentage of profits payed out will rise to 50% over time. So there will be just over a billion shares in issue after this. profits in 2016 of less than 1 billion. It might be a while before you get to 50c a share dividend. More likely to be between 10c and 20c/share payed out mid 2018

iknorr

Just following up on this...... I have read an article from a UK investor saying that the 30/1 consolidation will take place but also, like AIB, the share price, as in, per new share will be 1euro. If this is the case it will wipe out value just like what happened with AIB, is this true?

BrokenArrows

iknorr wrote: »

Just following up on this...... I have read an article from a UK investor saying that the 30/1 consolidation will take place but also, like AIB, the share price, as in, per new share will be 1euro. If this is the case it will wipe out value just like what happened with AIB, is this true?

They cant dictate what the new share price will be after consolidation. The market will dictate that.
Based on todays share price of 0.23 what would make the new price 6.90. That will be the new share price (give or take normal market fluctuations in price).

wordofwarning

lucky john wrote: »

the bank is expected to pay out 20% of 2017 profits as a dividend.

Brokers are estimating a dividend of 2.5% in 2018. Although they were predicting a dividend of 1% this year which obviously never materialized.

I believe the dividend is not so much about returning share holders value, but signaling to the market that BOI is a strong bank and can pay dividends like the rest of major European Banks.

lisasimpson

Sorry for jumping on this but whenever a dividend starts to pay out will your old dividend mandate stand? Dont have much of a holding but use to re-invest the divid as it didnt mount to much in the good old days

kenyard

Serious gains today

http://imgur.com/a/MM3Xb

scheister

kenyard wrote: »

Serious gains today

http://imgur.com/a/MM3Xb

saw that earlier. does this mean we are all rich now :P